Mountain Province Diamonds (TSX: MPVD) has issued a corporate update covering leadership changes, operational decisions at the Gahcho Kué Mine, and recent financial matters related to its joint venture with De Beers Canada.
The company holds a 49 percent interest in the Gahcho Kué Mine in Canada’s Northwest Territories, with De Beers holding the remaining 51 percent.
Board Appoints Jonathan Comerford as Acting CEO
Following the departure of former President and CEO Mark Wall, the Board of Directors has elected not to seek a replacement at this time as part of ongoing cost-saving initiatives.
Jonathan Comerford, currently Chairman of the Board, has been appointed Acting President and Chief Executive Officer.
Tuzo Phase 3 Project Paused Amid Market Weakness
Mountain Province and De Beers have agreed to pause development of the Tuzo Phase 3 project at the Gahcho Kué Mine after reviewing the project’s economics under current market conditions.
While the project has demonstrated strong technical potential, the partners determined that prevailing diamond market conditions warrant a more cautious development approach. The companies will continue to monitor the market to determine the appropriate timing for future advancement.
The pause is not expected to affect 2026 carat production or sales volumes, as mining operations remain focused on extracting higher-grade ore from the NEX pipe. The company plans to release its fourth-quarter 2025 production and sales results, along with 2026 guidance, later this week.
In-Kind Election Notices Received From De Beers
Mountain Province has received three in-kind election notices from De Beers totaling approximately CAD 49.2 million under the amended joint venture agreement dated March 18, 2025.
While receipt of the notices does not immediately constitute an event of default, failure to settle the outstanding amounts within 60 days of each notice would trigger a formal default under the joint venture agreement and could result in cross-defaults under other secured debt arrangements.
Payments totaling approximately CAD 38.8 million are due by March 17, 2026, with the remaining balance payable in weekly installments thereafter. The company believes proceeds from scheduled diamond sales may be sufficient to cover the first payment.
Mountain Province has also received an additional in-kind election notice related to historical overdraft amounts used to finance prior operations. The company has stated it has not yet reviewed the basis or amount of this claim and continues discussions with De Beers regarding all outstanding notices.
Ongoing Discussions to Reduce Joint Venture Costs
Management confirmed it remains in active dialogue with De Beers to address the in-kind election notices and identify opportunities to reduce joint venture costs while preserving long-term value for stakeholders.
Extension Granted on Bridge Facility Fee Approval
As previously disclosed, Mountain Province agreed to pay a US 1 million facility fee to Dunebridge Worldwide in connection with a US 10 million increase to its bridge credit facility.
The deadline for shareholder approval of the fee has been extended from January 25, 2026, to June 30, 2026, allowing the matter to be addressed at the company’s 2026 annual general meeting. The extension avoids a potential default under the facility agreement.
Management Commentary
Acting President and CEO Jonathan Comerford said the company continues to face challenges tied to prolonged weakness in the global diamond market.
Management’s focus remains on cost discipline, liquidity preservation, and careful decision-making aimed at maintaining the long-term sustainability of both the company and the Gahcho Kué Mine.
About Mountain Province Diamonds
Mountain Province Diamonds is a 49 percent joint venture partner with De Beers at the Gahcho Kué Mine, one of Canada’s largest diamond operations. The company also controls more than 96,000 hectares of prospective mineral claims surrounding the mine, including resources at the Kelvin and Faraday kimberlites.
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